Small and Medium-sized Enterprises: Late Payments

Lord Broers Excerpts

Thursday 19th June 2014 Lords Chamber

[Viscount Younger of Leckie]

I hope that I can assure my noble friend that, in addition to introducing the new reporting requirement, we are looking at giving suppliers more information on what to expect from their customers and therefore to be in a better position to make an informed judgment on whether to enter a commercial relationship, and how to negotiate fair terms or challenge unfair terms, as well as how to understand what they need to do to ensure that they get paid on time.

[Lord Broers (CB)]

My Lords, what are the Government doing to help small companies to obtain payments from overseas companies that refuse to pay?

[Viscount Younger of Leckie]

The noble Lord raises an important point. This is very much a question for the companies and the contracts that they enter into. The Government can certainly produce a framework and, indeed, from the UK angle, the small business Bill will take matters forward to give greater clarity and transparency.